Telecommuting Ideas?

Our company is seriously looking at allowing, possibly even requiring,
office worker to telecommute. I'm all for the idea, but not as
all-encompassing as the owner is picturing. I'd like some feedback on ideas.
Basically, we're replaicing our SQL-Anywhere application for a web based
service. While this is our main application, we still have other
programs on users' computers (Office, GroupWise, GWIM, etc). My thinking
is that if we really expect folks to work telecommute full time, or even
the majority of the time, our one-man IT staff (meaning me) is going to
be unable to keep up. Hiring more IT people would be counter-productive
(the idea is to cut down costs).
Because of this, my thinking is that even though the primary app is
web-based, we'd still be better off if the "computer" the remote user is
using is actually on our premises - Terminal Services, Citrix, or even
Virtual PC's.
I'm actually leaning towards the latter for a number of reasons. Each
"PC" is bascally isolated. A user screwing up his "pc" doesn't affect
the others the way TS or Citrix can. "Repair" would be simplified -
simply copy the original install image back to the virtual PC if there
are problems. All "maintenance" would be local. The only requirements
for the end user is a PC with an RDP client, and a network connection.
Thoughts?